Combination payment card and methods thereof

ABSTRACT

Systems and methods for processing payment transactions using combination payment cards. The combination payment card is associated with an open-loop account and one or more closed-loop accounts. Transaction information is received from a point-of-sale device. At least one of the closed-loop and open-loop account is debited.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application which is a continuation-in-part of prior U.S. patentapplication Ser. No. 14/221,420 filed Mar. 21, 2014 entitled“COMBINATION PAYMENT CARD AND METHODS THEREOF,” which is a continuationof prior U.S. patent application Ser. No. 13/599,538, filed Aug. 30,2012 entitled “SYSTEMS, METHODS AND APPARATUS FOR PAYMENT PROCESSING,”both of which are incorporated herein by reference in their entirety.

TECHNICAL FIELD

This application relates generally to financial transaction processing,and more particularly, to the use and processing of closed-loop cardsand open-loop cards.

BACKGROUND

Prepaid cards are becoming increasingly popular. Such prepaid cards mayalso be referred to as a “gift card” or a “stored value card.” Thesecards can often be purchased at a retail location, or a financialinstitution, for a specified amount, e.g., twenty dollars, or for anon-denominated amount whereby the cardholder or other party candesignate the exact funding amount. Prepaid cards can be associated withopen-loop type accounts or closed-loop type accounts. Open-loop typecards may be redeemed at many retail locations, for example, whereverthe prepaid cards' sponsoring network, such as VISA, MASTERCARD,DISCOVER, or AMERICAN EXPRESS, is accepted. By comparison, closed-looptype cards are typically only honored at limited locations, such as atdesignated merchants.

SUMMARY

In accordance with one embodiment, a non-transitory computer readablemedium has instructions stored thereon which when executed by aprocessor cause the processor to receive transaction information from anacquirer through a sponsoring network, the transaction informationcomprising an authorization request, a payment card account number, anda merchant identifier. The instructions also cause the processor todetermine whether the payment card account number identifies acombination payment card, wherein the combination payment card has anassigned card number that is associated with both a closed-loop accountand an open-loop account, wherein the closed-loop account associatedwith the assigned card number is affiliated with a closed-loop merchantand the open-loop account associated with the assigned card number isaffiliated with the sponsoring network. When the payment card accountnumber identifies the combination payment card, the instructions causethe processor to determine, based on the merchant identifier, whetherthe transaction information is received from the closed-loop merchant.When the received transaction information is from the closed-loopmerchant, the instructions cause the processor to determine whether theclosed-loop account has sufficient funds. When the closed-loop accounthas sufficient funds, the instructions cause the processor to cause anauthorization of sale to be transmitted to the acquirer through thesponsoring network. When the received transaction information is notfrom the closed-loop merchant, the instructions cause the processor todetermine whether the open-loop account has sufficient funds. When theopen-loop account has sufficient funds, the instructions cause theprocessor to cause an authorization of sale to be transmitted to theacquirer through the sponsoring network. When the payment card accountnumber is not associated with the combination payment card, theinstructions cause the processor to determine whether a payment cardaccount identified by the payment card account number has sufficientfunds.

In accordance with another embodiment, a non-transitory computerreadable medium has instructions stored thereon which when executed by aprocessor cause the processor to receive transaction information from anacquirer through a sponsoring network, the transaction informationcomprising an authorization request and a payment card account number.The instructions also cause the processor to determine whether thepayment card account number is associated with a combination paymentcard, wherein the combination payment card has an assigned card numberthat is associated with both a closed-loop prepaid account that isaffiliated with a merchant and a prepaid account that is affiliated withthe sponsoring network. When the payment card account number isassociated with a combination payment card and the transactioninformation is received from the merchant, the instructions cause theprocessor to cause an authorization to be transmitted to the acquirerthrough the sponsoring network when the closed-loop prepaid account hassufficient funds to cover the authorization request. When the paymentcard account number is associated with a combination payment card andthe transaction information is not received from the merchant, theinstructions cause the processor to determine whether the prepaidaccount has sufficient funds to cover the authorization request. Whenthe payment card account number is not associated with the combinationpayment card, the instructions cause the processor to determine whethera payment card account associated with the payment card account numberhas sufficient funds to cover the authorization request.

In accordance with another embodiment, a payment processing systemcomprises a combination payment card, wherein the combination paymentcard has an assigned card number that is associated with both aclosed-loop account and an open-loop account, wherein the closed-loopaccount associated with the assigned card number is affiliated with aclosed-loop merchant and the open-loop account associated with theassigned card number is affiliated with a sponsoring network. Thepayment processing system also comprises a payment processor, whereinthe payment processor is one of an acquirer and an issuer. The paymentprocessor is configured to receive transaction information comprising anauthorization request, a payment card account number, and a merchantidentifier and determine whether the payment card account numberidentifies the combination payment card. When the payment card accountnumber identifies the combination payment card, it is determined, basedon the merchant identifier, whether the transaction information isassociated with the closed-loop merchant. When the received transactioninformation is associated with the closed-loop merchant, it isdetermined whether the closed-loop account has sufficient funds. Whenthe closed-loop account has sufficient funds, an authorization of saleis caused to be transmitted. When the received transaction informationis not from the closed-loop merchant, it is determined whether theopen-loop account has sufficient funds. When the open-loop account hassufficient funds, an authorization of sale is caused to be transmitted.When the payment card account number is not associated with thecombination payment card, it is determined whether a payment cardaccount identified by the payment card account number has sufficientfunds.

BRIEF DESCRIPTION OF THE DRAWINGS

It is believed that certain embodiments will be better understood fromthe following description taken in conjunction with the accompanyingdrawings in which:

FIGS. 1-3 show example balances of various open-loop and closed-loopaccounts associated with combination payment cards.

FIGS. 4-6 show block diagrams of diagrams of example payment systemswith acquirer-side combination payment card processing in accordancewith various non-limiting embodiments.

FIG. 10 schematically shows the flow of funds between various entitiesand accounts for issuer-side combination card processing in accordancewith one non-limiting embodiment.

FIG. 11 shows one example of a payment controller that receives andprocesses payment transactional information.

DETAILED DESCRIPTION

Various non-limiting embodiments of the present disclosure will now bedescribed to provide an overall understanding of the principles of thestructure, function, and use of the financial transaction processingsystems and methods disclosed herein. One or more examples of thesenon-limiting embodiments are illustrated in the accompanying drawings.Those of ordinary skill in the art will understand that systems andmethods specifically described herein and illustrated in theaccompanying drawings are non-limiting embodiments. The featuresillustrated or described in connection with one non-limiting embodimentmay be combined with the features of other non-limiting embodiments.Such modifications and variations are intended to be included within thescope of the present disclosure.

Reference throughout the specification to “various embodiments,” “someembodiments,” “one embodiment,” “some example embodiments,” “one exampleembodiment,” or “an embodiment” means that a particular feature,structure, or characteristic described in connection with the embodimentis included in at least one embodiment. Thus, appearances of the phrases“in various embodiments,” “in some embodiments,” “in one embodiment,”“some example embodiments,” “one example embodiment, or “in anembodiment” in places throughout the specification are not necessarilyall referring to the same embodiment. Furthermore, the particularfeatures, structures or characteristics may be combined in any suitablemanner in one or more embodiments.

As used herein, the term “prepaid account” can refer to any accountcapable of having a balance that can be funded in advance, which whenused in a financial transaction the balance can be debited. Prepaidaccounts can be associated with may instruments, such as, but notlimited to, a stored value account, a gift card account or, a payrollcard account.

As used herein, the term “prepaid card” can refer to any access deviceassociated with a prepaid account as the term is used herein. Exampleprepaid cards can include, but are not limited to, a gift card, apayroll card, a stored value card, a smart card, or a contactless card.Prepaid cards may be embodied either as a tangible medium form factor oras an electronic or virtual-type instrument provided by a merchant, aretailer, an employer, a merchant bank, an employer bank, a financialinstitution, or any other suitable type of entity. In one example, aprepaid card can be a denominated plastic card with a predeterminedmonetary amount associated with the card. In another example, a prepaidcard can be an electronic certificate with a predetermined monetaryamount associated with the certificate. In other examples, a prepaidcard may be a non-denominated card, whereby a consumer can designate thevalue to fund one or more of the associated account. Example prepaidcards may include or have associated therewith, but are not limitedthereto, one or more of the following: an account number, a card number,a personal identification number, a magnetic stripe, a bar code, and/ora contactless transaction means.

The presently disclosed embodiments are generally directed to systemsand methods for processing a transaction involving a prepaid card. Suchprepaid cards can be tied, linked or otherwise associated to both anopen-loop prepaid account and one or more closed-loop prepaid accounts.The prepaid card for use with the embodiments disclosed herein may bereferred to herein as a “combination payment card” or “combinationaccount card”, as the prepaid card is associated with a variety ofaccount types.

With regard to the open-loop prepaid account associated with thecombination payment card, the combination payment card can be used atany location where the cards' sponsoring network, such as VISA,MASTERCARD, DISCOVER, or AMERICAN EXPRESS, is accepted. The open-loopprepaid accounts of the combination payment card can be functionallysimilar to, for example, payment cards commonly referred to as generalpurpose reloadable cards. In some embodiments, the card's sponsoringnetwork can be identified on the face of the combination payment card,such as by a logo or other indicia. Generally, open-loop prepaidaccounts can be funded by a cardholder, another person, a company, agovernment agency, and so forth. These accounts are not typically likedto a cardholder's bank account or other lines of credit. Furthermore,only funds that are loaded onto the card can be spent by the cardholder.

The closed-loop prepaid account associated with the combination paymentcard, sometimes referred to as a merchant gift card account, can be usedat one or more particular merchants that are associated with theclosed-loop prepaid account. In some embodiments, the one or moreparticular merchants that are associated with the closed-loop prepaidaccount can be identified on the face of the combination payment card.As is to be appreciated, a wide variety of merchants can be associatedwith the combination payment card, such as, without limitation,retailers, restaurants, hotels, airlines, or any other provider of goodsor services.

The cardholder can use the combination payment card for payment at avariety of merchant types. A first merchant type that can accept thecombination payment card is any merchant within the cards' sponsoringnetwork. In addition, a second merchant type that can accept thecombination payment card is any merchant associated with the closed-loopprepaid account that is linked to the combination payment card. When thecombination payment card is used by a cardholder to make a purchase at amerchant that is not associated with the closed-loop prepaid account,the combination payment card can functionally perform as an open-loopprepaid card. In other words, at those types of merchants an accountassociated with the open-loop prepaid account can be debited for thepurchase. By comparison, when the combination payment card is used tomake a purchase at a merchant that is associated with the closed-loopprepaid account, any funds available in the closed-loop prepaid accountcan be utilized to pay for, or at least partially pay for, the purchase.

It is noted that the terms “purchase” and “merchant” are herein usedbroadly, as combination payment cards can be used to make any suitabletype of purchase from any suitable type of merchant. For example, thepurchase can be for, without limitation, goods or services from a brickand mortar store, an e-commerce website, a public utility, and so forth.Combination payment cards can also, in certain circumstance, be used tomake load payments, credit card payments, and so forth. All suchsuitable implementations and variations are intended to be covered bythe present disclosure.

In some embodiments, when making a purchase using the closed-loopprepaid account, if the available funds in the closed-loop prepaidaccount do not cover the full purchase amount, the payment for thedeficiency can be sought from the open-loop prepaid account that isassociated with the combination payment card. Alternatively, when theavailable funds in the closed-loop prepaid account do not cover the fullpurchase amount, the cardholder can subsidize the deficiency usinganother form of payment, such as a cash payment.

In some embodiments, for purchases transacted at a merchant associatedwith the closed-loop prepaid account, the cardholder can be prompted atthe point-of-sale terminal to identify which of the accounts associatedwith the combination payment card should be debited. In other words, thecardholder can be prompted to determine if the purchase should becharged to the cardholder's open-loop prepaid account or charged to thecardholder's closed-loop prepaid account.

The combination payment card can be assigned a card number, such as anIssuer Notification Number (IIN) or a Bank Identification Number (BIN),which is provided on the face of the card. The combination payment cardcan comprise a variety of markings or identification means known in theart, such as a magnetic stripe, a bar code, a QR code, and/or acontactless transaction means for conveying the card number to apoint-of-sale terminal. The card number can be formatted or structuredso that the combination payment card can be used by a cardholder to makepurchases using the associated open-loop prepaid account at anypoint-of-sale location (including both brick and mortar locations andonline locations) within the sponsoring network. Thus, with respect tomerchant processors (sometimes referred to as acquirers) that performpayment processing for merchants that are not associated with theclosed-loop prepaid account of the combination payment card, thecombination payment card is functionally similar to a standard prepaidopen-loop card. Merchants that are not associated with the closed-loopprepaid account of the combination payment card are sometimes referredto herein as “open-loop merchants.”0 When the combination payment cardis used to make a purchase at one or more merchants associated with theclosed-loop prepaid account with the combination payment card, theassociated closed-loop prepaid account can be utilized. Merchants thatare associated with the closed-loop prepaid account of the combinationpayment card are sometimes referred to herein as “closed-loopmerchants.” Thus, the single card number assigned to the combinationpayment card can trigger the debiting of an open-loop prepaid account ora closed-loop prepaid account, depending on the merchant from whichauthorization is sought.

As described in more detail below, in some embodiments, an acquirer thatperforms payment processing for one of the closed-loop merchants canmake the determination as to which payment processing technique shouldbe used in accordance with one or more transaction processing rules. Thetransaction processing rules can be based on, for example, the cardnumber that the acquirer receives during a payment transaction from thepoint-of-sale device. Acquirers that perform payment processing foropen-loop merchants may be generally unaware that the payment card iseven a combination payment card or is linked to any closed-loopaccounts. Additionally or alternatively, an issuer of the combinationpayment card the performs payment processing (sometimes referred to asissuers) can make the determination as to which payment processingtechnique should be used in accordance with one or more transactionprocessing rules. Similar to acquirer-side processing, the transactionprocessing rules can be based on, for example, the card number that theissuer receives during a payment transaction. With an issuer making thedetermination, acquirers that perform payment processing for closed-loopmerchants may be generally unaware that the payment card is even acombination payment card or is linked to any closed-loop accounts.

For purposes of illustration, FIGS. 1-3 show the impact of variousevents on the balances of the various open-loop and closed-loop prepaidaccounts that are associated with example combination payment cards. Asis to be readily appreciated, the various balances of the combinationpayment cards presented in FIGS. 1-3 are merely for illustrationpurposes.

Referring first to FIG. 1, a combination payment card 100 having apayment card account number 101 is issued at event 102 that isassociated with, linked to, or otherwise affiliated with an open-loopprepaid account and a closed-loop prepaid account (e.g., merchant giftcard account). For the purposes of illustration, the closed-loop prepaidaccount is affiliated with Merchant A. At issuance, the combinationpayment card 100 has an open-loop prepaid account balance of $50.00 anda closed-loop prepaid account balance of $5.00. In some embodiments, theinitial value of the closed-loop prepaid account can be substantiallyequal to an activation fee that is associated with the combinationpayment car 100. At event 104, the cardholder makes a $10.00 purchase atMerchant B. As shown, the prepaid account open-loop prepaid account isdebited to reduce the balance to $40.00. The balance of the closed-loopprepaid account remains the same. At event 106, the cardholder makes a$3.00 purchase at Merchant A. As shown, the closed-loop prepaid accountis debited to reduce the balance to $2.00. The balance of the open-loopprepaid account prepaid remains the same. At event 108, the cardholdermakes a $30.00 purchase at Merchant C. The open-loop prepaid accountprepaid is debited to reduce the balance to $10.00. At event 110, thecardholder makes a $5.00 purchase at Merchant A. The available balancein the gift card account is $2.00. Accordingly, the available $2.00 inthe gift card account is first applied to the transaction therebyreducing the balance in the gift card account to zero. The $3.00deficiency, which is amount still due to cover the transaction at event110, is then debited from the open-loop prepaid account prepaid toreduce the balance to $7.00.

Referring now to FIG. 2, a combination payment card 200 having a paymentcard account number 201 is issued at event 202 that is associated with,linked to, or otherwise affiliated with an open-loop prepaid account andtwo different closed-loop accounts (sometimes referred to as gift cardaccounts), namely a Merchant A closed-loop account and a Merchant Bclosed-loop account. As is to be appreciated, while two affiliated giftcard accounts are illustrated, any suitable number of closed-loopprepaid accounts can be affiliated with the combination payment card200. At issuance, the combination payment card 200 has an open-loopprepaid account balance of $100.00, a Merchant A gift card accountbalance of $20.00, and a Merchant B gift card account balance of $5.00.At event 204, the cardholder makes a $70.00 purchase at Merchant C. Asshown, the open-loop prepaid account prepaid is debited to reduce thebalance to $30.00. The balances of the closed-loop prepaid accountsremain the same. At event 206, the cardholder makes a $5.00 purchase atMerchant B. As shown, the Merchant B gift card account is debited toreduce the balance to zero. The balances of the open-loop prepaidaccount prepaid and Merchant A gift card account remain the same. Atevent 208, the cardholder makes a $15.00 purchase at Merchant A. TheMerchant A gift card account balance is debited to reduce the balance to$5.00. Similar to combination payment card 100, a deficiency of paymentdue from either of the closed-loop prepaid accounts can be sought fromthe open-loop prepaid account prepaid. In some embodiments, a deficiencyof payment due from one of the closed-loop prepaid accounts can besought from the other closed-loop prepaid accounts linked to thecombination payment card

Referring now to FIG. 3, a commination payment card 300 having a paymentcard account number 301 is issued at event 302 that is associated with,linked to, or otherwise affiliated with an open-loop prepaid accountprepaid and a pooled gift card account. In the illustrated embodiment,the pooled gift card account is tied to Merchant A and Merchant B suchthat purchases at either Merchant A or Merchant B can be paid from thepooled gift card account. As is to be appreciated, while two merchantsare shown affiliated with the pooled gift card account, any suitablenumber of merchants can be affiliated with the pooled gift card accountof combination payment card 300. At issuance, the combination paymentcard 300 has an open-loop prepaid account balance of $50.00 and a pooledgift card account balance of $50.00. At event 304, the cardholder makesa $10.00 purchase at Merchant A. As shown, the pooled gift card accountbalance is debited to reduce the balance to $40,00. The balance of theopen-loop prepaid account remains the same. At event 306, the cardholdermakes a $20.00 purchase at Merchant C. As shown, the open-loop prepaidaccount is debited to reduce the balance to $30.00. At event 308, thecardholder makes a $50.00 purchase at Merchant B. The available balancein the pooled gift card account is $40.00. Accordingly, the available$40.00 in the pooled gift card account is applied to the transactionthereby reducing the balance in the gift card account to zero. The$10.00 deficiency, which is amount still due to cover the transaction atevent 380, is debited from the open-loop prepaid account balance toreduce the balance to $20.00.

FIG. 4 shows a block diagram 400 of one example payment system. Acombination payment card 401 whose in FIG. 4, for the purposes ofillustration, is associated with an open-loop prepaid account associatedwith a sponsoring network and a closed-loop account associated with amerchant. The combination payment card 401 can be functionally similarto the combination payment card 100 illustrated in FIG. 1. When acardholder of the combination payment card 401 seeks to use thecombination payment card 401 for a payment transaction at merchant 402,account information is received by the point-of-sale (POS) device 404.The account information can be, for example, the card number or otheridentifying indicia. The account information can be electronicallyprovided to the acquirer 406 using techniques known in the art in theform of an authentication request. Additional information can include,for example, such as a merchant identification (MID), a terminalidentification, other merchant-specific identifying indicia, and/orother transaction-related data. The transaction-related data can includedetails about the transaction, such as purchase price, for example. Theinformation received from the POS device 404 can be referred togenerally as transaction data.

Upon receiving the transaction data, the acquirer 406 can determine theappropriate treatment for the authorization request. Namely, usingvarious transaction processing rules described herein, the acquirer 406can determined whether to authorize the purchase as an open-looptransaction, a closed-loop transaction, or a combination of open-loopand closed-loop transactions. At decision 408, the acquirer 406determines if the card associated with the transaction is a combinationpayment card. If the card is not a combination payment card, theacquirer 406 can process the transaction as an open-loop transaction, asdenoted by block 410, or otherwise process the transaction in accordancewith the type of card supplied by the cardholder. The transaction datacan then be sent through the payment network 412, as is known in theart, and an authorization 414 (assuming approval of the request by thepayment network) returned to the POS device 404. As is to be appreciatedby those skilled in the art, the payment network 412 illustrated in FIG.4 includes the sponsoring network associated with the combinationpayment card 401.

The determination as to whether the card associated with the transactionis a combination payment card can be based on, for example, the accountnumber received from the POS device 404. In some embodiments,determining whether the card associated with the transaction is acombination payment card includes cross-referencing at least a portionof the account number against a known list of combination payment cardaccount numbers. In other words, the acquirer 406 can identify a rangeof account numbers that are to be assigned to combination payment cards.When a combination payment cards is issued, it is given an accountnumber from within that range of account numbers. Other techniques canalso be used for providing indicia to the combination payment card thatcan subsequently be used by the acquirer 406 to flag the card as acombination payment card. For example, a particular sequence of numberscan be used in the account number. In some embodiments, a database ofknown combination payment card account numbers is maintained by anacquirer or other entity. In any event, since a combination payment cardcan be used for transactions at any open-loop merchant within thesponsoring network, the account number may typically follow standardnumbering conventions.

Once it is determined by the acquirer 406 that the card 401 is acombination payment card, it is determined at 416 if the transaction isfrom a merchant that is associated with the closed-loop prepaid accounttied to the card 401. In the illustrated embodiment, for example, it isdetermined if the merchant 402 is the gift card merchant tied to theaccount. If merchant 402 is not the gift card merchant tied to theaccount, the acquirer 406 can process the transaction as an open-looptransaction, as denoted by block 410. If merchant 402 is determined tobe the gift card merchant tied to the account, the acquirer 406 canprocess the transaction as a closed-loop transaction, as denoted byblock 418.

In some embodiments, determining whether the merchant associated withthe transaction is the merchant tied to the combination payment cardincludes cross-referencing merchant identifying indicia received fromthe POS device 404 to merchant-related data stored by the acquirer 406.For example, the data stream received from the POS device 404 caninclude a MID. After determining that the card 401 is a combinationpayment card, the incoming MID can be cross-referenced to a list of oneor more MIDs associated with that combination payment card. It is noted,however, that the present disclosure is not limited to the use of MIDs,as other merchant identifying indicia can be used by the acquirer 406.In one embodiment, for example, a terminal ID received by the acquirer406 can be used as merchant identifying indicia. In this way, thecombination payment card can be used as a closed-loop card at onlycertain merchant terminals. The terminal ID received during thetransaction can be cross-referenced against a list of acceptableterminal IDs that have been previously identified. Only if the terminalID is found within the list of acceptable terminal IDs does the acquirer406 process the transaction as a closed-loop transaction. Thus, usingterminal IDs, a merchant can control which stores, or even which POSdevices within a single retail location, can process the card 401 as amerchant gift card.

Once the acquirer 406 has determined that the card 401 is a combinationpayment card and the transaction is occurring at the merchant that isassociated with the closed-loop prepaid account, it is determined at 422if the account balance of the gift card account is sufficient to coverthe amount requested. In one embodiment, an authorization request isused to determine if the available account balance of the associatedclosed-loop prepaid account covers the amount requested. If the accountbalance is sufficient to cover the amount requested, an authorization423 can be sent to the POS device 404. The closed-loop prepaid accountbalance associated with the card 401 can also be reduced by the purchaseamount authorized. If, however, the closed-loop prepaid account balanceis not sufficient to cover the amount requested, a partial approval canbe returned in response to the authorization request. The remainingbalance of the requested amount can be treated as an open-looptransaction, as illustrated by block 424. This balance can be sentthrough the payment network 412, as described above. Thus, if theauthorization amount requested from the POS device 404 exceeds theavailable balance in the closed-loop account associated with the card401, the acquirer 406 can seek the deficiency from the open-loop prepaidaccount that is associated with the card 401. If the open-loop prepaidaccount that is associated with the card 401 does not have sufficientfunds, the cardholder may be requested to supply additional types offunds to ultimately complete the transaction.

FIG. 5 shows a block diagram 500 of another example payment system. Acombination payment card 501 illustrated in FIG. 5, for the purposes ofillustration, is associated with an open-loop prepaid account, aclosed-loop prepaid account associated with Merchant A, and aclosed-loop prepaid account associated with Merchant B. The combinationpayment card 501 can be functionally similar to the combination paymentcard 200 shown in FIG. 2. When a cardholder of the combination paymentcard 501 seeks to use the combination payment card 501 for a paymenttransaction at merchant 502, account information is received by thepoint-of-sale (POS) device 504. The account information can beelectronically provided to the acquirer 506 using techniques known inthe art in the form of an authentication request. Similar to the blockdiagram 400 described above, additional information can be conveyed tothe acquirer 506 along with the account information. Such additionalinformation can include, for example, such as a MID, a terminal ID,other merchant-specific identifying indicia, and/or othertransaction-related data.

Upon receiving the transaction data, the acquirer 506 can determine theappropriate treatment for the authorization request. Namely, usingvarious transaction processing rules, the acquirer 506 can determinewhether to authorize the purchase as an open-loop transaction, aclosed-loop transaction, or a transaction comprising an open-loopcomponent and a closed-loop component. At decision 508, the acquirer 506determines if the card associated with the transaction is a combinationpayment card. If the card is not a combination payment card, theacquirer 506 can process the transaction as an open-loop transactionusing payment network 512, as is known in the art. The transactioninformation can then be sent through the payment network 512 and anauthorization 514 returned to the POS device 504.

Similar to the decision 408 described above with regard to FIG. 4, thedetermination at 508 as to whether the card associated with thetransaction is a combination payment card can be based on the accountnumber received from the POS device 504. Once it is determined by theacquirer 506 that the card 501 is a combination payment card, it isdetermined at 516 if the transaction is at a first merchant (illustratedas Merchant A) associated with the closed-loop prepaid account tied tothe card 501. If not, it is determined at 517 if the transaction is at asecond merchant (illustrated as Merchant B) associated with theclosed-loop prepaid account tied to the card 501. As described abovewith regard to decision 416 in FIG. 4, determining whether the merchantassociated with the transaction is the merchant tied to the combinationpayment card at decision point 516, 517 can include cross-referencingmerchant identifying indicia received from the POS device 504 tomerchant-related data stored by the acquirer 506. While two merchantsare shown associated with a combination payment card in FIG. 5, anysuitable number of merchants can be associated with the combinationpayment card. In any event, if is determined at 517 that merchant 502 isnot tied to any gift card account associated with the card 501, theacquirer 506 can process the transaction as an open-loop transaction.The transaction details can be sent to a payment network 512 andauthorization 514 returned to the POS device 504.

Referring again to decision 516, if the merchant 502 is determined to bea gift card merchant tied to the account, the acquirer 506 can processthe transaction as a closed-loop transaction. At 522, it is determinedif the account balance of the closed-loop prepaid account associatedwith Merchant A is sufficient to cover the amount requested. In oneembodiment an authorization request is used to determine if theavailable account balance of the Merchant A closed-loop prepaid accountcovers the amount requested. If the account balance is sufficient tocover the amount requested, an authorization 523 can be sent to the POSdevice 504. The Merchant A closed-loop prepaid account balanceassociated with the card 501 can also be reduced by the amountauthorized. If the account balance in the Merchant A closed-loop prepaidaccount is not sufficient to cover the amount requested, a partialapproval can be returned in response to the authorization request. Theremaining balance of the requested amount can be treated as an open-looptransaction. The amount of deficiency can be sent through the paymentnetwork 512.

Referring again to decision 517, if the merchant 502 is determined to bea gift card merchant tied to the account, the acquirer 506 can processthe transaction as a closed-loop transaction. At 524, it is determinedif the account balance of the closed-loop prepaid account associatedwith Merchant B is sufficient to cover the amount requested. Anauthorization request can be used to determined if the available accountbalance of the Merchant B closed-loop prepaid account is sufficient tocover the amount requested. If the account balance is sufficient tocover the amount requested, authorization 523 can be sent to the POSdevice 504. The Merchant B closed-loop prepaid account balanceassociated with the card 501 can be reduced by the amount authorized.If, however, the account balance in the Merchant B closed-loop prepaidaccount is not sufficient to cover the amount requested, a partialapproval can be returned and the amount of the deficiency can be treatedas an open-loop transaction. The amount of deficiency can be sentthrough the payment network 512. If the open-loop prepaid account thatis associated with the card 501 does not have sufficient funds, thecardholder may be requested to supply additional types of funds toultimately complete the transaction.

FIG. 6 shows a block diagram 600 of yet another example payment system.A combination payment card 601 illustrated in FIG. 6, for the purposesof illustration, is associated with an open-loop prepaid account and apooled closed-loop account. The pooled closed-loop account can beassociated with any number or types of merchants. For the purposes ofillustration, the pooled closed-loop account is associated with MerchantA and Merchant B. The combination payment card 601 can be functionallysimilar to the combination payment card 300 shown in FIG. 3. When acardholder of the combination payment card 601 seeks to use thecombination payment card 601 for a payment transaction at merchant 602,account information is received by the point-of-sale (POS) device 604.The account information can be electronically provided to the acquirer606 using transmission techniques known in the art in the form of anauthentication request. Similar to the block diagram 400 describedabove, additional information can be conveyed to the acquirer 606 alongwith the account information. Such additional information can include,for example, such as a MID, a terminal ID, other merchant-specificidentifying indicia, and/or other transaction-related data.

Upon receiving the transaction data, the acquirer 606 can determine theappropriate treatment for the authorization request. Namely, usingvarious transaction processing rules, the acquirer 606 can determine toauthorize the purchase as an open-loop transaction, a closed-looptransaction, or a transaction comprising an open-loop component and aclosed-loop component. At decision 608, the acquirer 606 determines ifthe card associated with the transaction is a combination payment card.If the card is not a combination payment card, the acquirer 606 canprocess the transaction as an open-loop transaction using paymentnetwork 612, as is known in the art. The transaction information canthen be sent through the payment network 612 and an authorization 614returned to the POS device 604.

Similar to the decision 408 described above with regard to FIG. 4, thedetermination at 608 as to whether the card associated with thetransaction is a combination payment card can be based on the accountnumber received from the POS device 604. Once it is determined by theacquirer 606 that the card 601 is a combination payment card, it isdetermined at 616 if the transaction is at a first merchant (illustratedas Merchant A) or at a second merchant (illustrated as Merchant B), bothof which are associated with the pooled closed-loop prepaid account tiedto the card 601. As described above with regard to decision 416 in FIG.4, determining whether the merchant associated with the transaction isthe merchant tied to the combination payment card at decision points 616can include cross-referencing merchant identifying indicia received fromthe POS device 604 to merchant-related data. While two merchants areshown associated a combination payment card in FIG. 6, any suitablenumber of merchants can be associated with the combination payment card.In any event, if it is determined at 616 that merchant 602 is not a giftcard merchant tied to the pooled gift card account associated with thecard 601, the acquirer 606 can process the transaction as an open-looptransaction. The transaction details can be sent to a payment network612 and authorization 614 returned to the POS device 604.

If the merchant 602 is determined at decision 616 to be a gift cardmerchant tied to the pooled gift card account, the acquirer 606 canprocess the transaction as a closed-loop transaction. At 622, it isdetermined if the account balance of the closed-loop prepaid accountassociated with merchant 602 is sufficient to cover the amountrequested. Similar to the embodiments described above, an authorizationrequest can be used to determine if the available account balance of thepooled closed-loop prepaid account covers the amount requested. If theaccount balance is sufficient to cover the amount requested,authorization 623 can be sent to the POS device 604. The pooled giftcard account balance associated with the card 601 can be reduced by theamount authorized. If the account balance in the pooled gift cardaccount is not sufficient to cover the amount requested, a partialapproval can be returned in response to the authorization request. Theremaining balance of the requested amount can be sent through thepayment network 612 as an open-loop transaction, as illustrated in FIG.6. If the open-loop prepaid account that is associated with the card 601does not have sufficient funds, the cardholder may be requested tosupply additional types of funds to ultimately complete the transaction.

FIG. 7 shows a block diagram 700 of one example payment system havingissuer-side combination payment card processing functionality. Acombination payment card 701 shown in FIG. 7, for the purposes ofillustration, is associated with an open-loop prepaid account associatedwith a sponsoring network and a closed-loop account associated with amerchant. The combination payment card 701 can be functionally similarto the combination payment card 100 illustrated in FIG. 1, for example.When a cardholder of the combination payment card 701 seeks to use thecombination payment card 701 for a payment transaction at merchant 702,account information is received by the point-of-sale (POS) device 704.The account information can be, for example, the card number or otheridentifying indicia. The account information can be electronicallyprovided to an acquirer 706 using techniques known in the art in theform of an authentication request. Along with the account information,additional information can be conveyed to the acquirer 706 and onthrough payment network 712 to the issuer 714. Such additionalinformation can include, for example, a merchant identification (MID),terminal identification, other merchant-specific identifying indicia,and/or other transaction-related data. The transaction-related data caninclude details about the transaction, such as purchase prices, forexample. The information received from the POS device 404 can bereferred to generally as transaction data.

Upon receiving the transaction data, the issuer 714 can determine theappropriate treatment for the authorization request. Namely, usingvarious transaction processing rules described herein, the issuer 714can determine whether to authorize the purchase as an open-looptransaction, a closed-loop transaction, or a combination of open-loopand closed-loop transactions. At decision 708, the issuer 714 determinesif the card associated with the transaction is a combination paymentcard. If the card is not a combination payment card, the issuer 714 canprocess the transaction as an open-loop transaction, as denoted by block710, or otherwise process the transaction in accordance with the type ofcard supplied by the cardholder. As illustrated by block 730, as part ofthe open-loop processing, an amount of funds can be deducted from theappropriate open-loop account associated with the transaction. Thetransaction data can then be sent through the payment network 712, as isknown in the art, and an authorization 723 returned to the acquirer 706.As is to be appreciated by those skilled in the art, the payment network712 illustrated in FIG. 7 includes the sponsoring network associatedwith the combination payment card 701.

The determination as to whether the card associated with the transactionis a combination payment card can be based on, for example, the accountnumber received from the POS device 704. In some embodiments,determining whether the card associated with the transaction is acombination payment card includes cross-referencing at least a portionof the account number against a known list of combination payment cardaccount numbers. In other words, the issuer 714 can identify a range ofaccount numbers that are to be assigned to combination payment cards.When a combination payment card is issued, it is given an account numberfrom within that particular range of account numbers. Other techniquescan also be used for providing indicia to the combination payment cardthat can subsequently be used by the issuer 714 to flag the card as acombination payment card. For example, a particular sequence of numberscan be used in the account number. In some embodiments, a database ofknown combination payment card account numbers is maintained by anissuer or other entity. In any event, since a combination payment cardcan be used for transactions at any open-loop merchant within thesponsoring network, the account number may typically follow standardnumbering conventions to that it can be processed by standard POSdevices and associated acquirers.

Still referring to FIG. 7, once it is determined by the issuer 714 thatthe card 701 is a combination payment card, it is determined at 716 ifthe transaction is from a merchant that is associated with theclosed-loop prepaid account tied to the card 702. In the illustratedembodiment, for example, it is determined if the merchant 702 is thegift card merchant tied to the account. If merchant 702 is not the giftcard merchant tied to the account, the issuer 714 can process thetransaction as an open-loop transaction, as denoted by block 710. If themerchant 702 is determined to be the gift card merchant tied to theaccount, the issuer 714 can process the transaction as a closed-looptransaction, as denoted by block 718. As is to be appreciated, andsimilar to other embodiments described herein, the determination ofwhether the transaction is from a merchant tied to the gift cardmerchant can be performed before determining if the card used toinitiate the transaction is a combination card. The particular ordershown in FIG. 7 and other figures is merely for pedagogical purposes andnot intended to be limiting.

In some embodiments, determining whether the merchant associated withthe transaction is the merchant tied to the combination payment cardincludes cross-referencing various merchant identifying indicia receivedfrom the acquirer 706 (as received through the payment network 712) tomerchant-related data stored by, or at least accessible by, the issuer714. For example, the data stream received from the acquirer 706 caninclude a MID. After determining that the card 701 is a combinationpayment card, the incoming MID can be cross-referenced to a list of oneor more MIDs associated with that combination payment card. It is noted,however, that the present disclosure is not limited to the use of MIDs,as other merchant identifying indicia can be used by the issuer 714. Inone embodiment, for example, a terminal ID received by the issuer 714can be used as merchant identifying indicia. In this way, thecombination payment card can be configured to function as a closed-loopcard at only certain merchant terminals. The terminal ID received duringthe transaction can be cross-referenced against a list of acceptableterminal IDs that have been previously identified. Only if the terminalID is found within the list of acceptable terminal IDs does the issuer714 process the transaction as a closed-loop transaction. Thus, usingterminal IDs, a merchant can control which stores, or even which POSdevices within a single retail location, can process the card 701 as amerchant gift card.

Once the issuer 714 has determined that the card 701 is a combinationpayment card and the transaction is occurring at the merchant that isassociated with the closed-loop prepaid account, it is determined at 722if the account balance of the gift card account is sufficient to coverthe amount requested. If the account balance is sufficient to cover theamount requested, the authorization 723 can be sent to the acquirer 706via the payment network 712, as is known in the art. The closed-loopprepaid account balance associated with the card 701 can also be reducedby the purchase amount authorized. If, however, the closed-loop prepaidaccount balance is not sufficient to cover the amount requested, apartial approval can be returned in response to the authorizationrequest. The remaining balance of the requested amount can be treated asan open-loop transaction, as illustrated by block 724. This balance canbe deducted, for example, from an open-loop account at block 730. Thus,if the authorization amount requested from the POS device 704 exceedsthe available balance in the closed-loop account associated with thecard 701, the issuer 714 can seek the deficiency from the open-loopprepaid account that is associated with the card 701. If the open-loopprepaid account that is associated with the card 701 does not havesufficient funds, the cardholder may be requested to supply additionaltypes of funds to ultimately complete the transaction.

FIG. 8 shows a block diagram 800 of another example payment systemhaving issuer-side combination payment card processing functionality. Acombination payment card 801 shown in FIG. 8, for the purposes ofillustration, is associated with an open-loop prepaid account andmultiple closed-loop prepaid accounts, namely, a closed-loop prepaidaccount associated with Merchant A and a closed-loop prepaid accountassociated with Merchant B. The combination payment card 801 can befunctionally similar to the combination payment card 200 shown in FIG.2, for example. When a cardholder of the combination payment card 801seeks to use the combination payment card 801 for a payment transactionat a merchant 802, account information is received by the point-of-sale(POS) device 804. The account information can be electronically providedto an acquirer 806 using techniques known in the art in the form of anauthentication request, as is known in the art. Along with the accountinformation, additional information can be conveyed to the acquirer 806and on through payment network 812 to the issuer 814. Such additionalinformation can include, for example, such as a MID, a terminal ID,other merchant-specific identifying indicia, and/or othertransaction-related data.

Upon receiving the transaction data, the issuer 814 can determine theappropriate treatment for the authorization request. Namely, usingvarious transaction processing rules, the issuer 814 can determinewhether to authorize the purchase as an open-loop transaction, aclosed-loop transaction, or a transaction comprising an open-loopcomponent and a closed-loop component. At decision 808, the issuer 814determines if the card associated with the transaction is a combinationpayment card. If the card is not a combination payment card, the issuer814 can treat the transaction as an open-loop transaction, as indicatedby block 810. As illustrated by block 830, as part of the open-loopprocessing, an amount of funds can be deducted from the appropriateopen-loop account. Similar to the decision 708 described above withregard to FIG. 7, the determination at 808 as to whether the cardassociated with the transaction is a combination payment card can bebased on the account number received from the POS device 804. Once it isdetermined by the issuer 814 that the card 801 is a combination paymentcard, it is determined at 816 if the transaction is at a first merchant(illustrated as Merchant A) associated with the closed-loop prepaidaccount tied to the card 801. If not, it is determined at 817 if thetransaction is at a second merchant (illustrated as Merchant B)associated with the closed-loop prepaid account tied to the card 801. Asdescribed above with regard to decision 716 in FIG. 7, determiningwhether the merchant associated with the transaction is the merchanttied to the combination payment card at decision points 816, 817 caninclude cross-referencing merchant identifying indicia received from thePOS device 804 to merchant-related data stored by, or at leastaccessible by, the issuer 814. While two merchants are shown associatedwith a combination payment card in FIG. 8, any suitable number ofmerchants can be associated with the combination payment card. In oneembodiment, for example, three or more different merchants areassociated with the combination payment card. In another embodiment,twenty or more different merchants are associated with the combinationpayment card. In any event, if is determined at 817 that merchant 802 isnot tied to any gift card account associated with the card 801, theissuer 814 can process the transaction as an open-loop transaction, asillustrated in FIG. 8.

Referring again to decision 816, if the merchant 802 is determined to bea gift card merchant tied to the account (shown as Merchant A), theissuer 814 can process the transaction as a closed-loop transaction. At822, it is determined if the account balance of the closed-loop prepaidaccount associated with Merchant A is sufficient to cover the amountrequested. If the account balance is sufficient to cover the amountrequested, an authorization 823 can be sent to the acquirer 806 by wayof the payment network 812. The Merchant A closed-loop prepaid accountbalance associated with the card 801 can also be reduced by the amountauthorized. If the account balance in the Merchant A closed-loop prepaidaccount is not sufficient to cover the amount requested, in someembodiments a partial approval can be returned in response to theauthorization request. The remaining balance of the requested amount canbe treated as an open-loop transaction, as indicated by block 824. Theamount of deficiency can be deducted from the open-loop account at block830 and the transaction can be completed.

Referring again to decision 817, if the merchant 802 is determined to bea gift card merchant tied to the account (shown as Merchant B), theissuer 814 can process the transaction as a closed-loop transaction. At826, it is determined if the account balance of the closed-loop prepaidaccount associated with Merchant B is sufficient to cover the amountrequested. If the account balance is sufficient to cover the amountrequested, the authorization 823 can be sent to the acquirer 806 via thepayment network 812. The Merchant B closed-loop prepaid account balanceassociated with the card 801 can be reduced by the amount authorized.If, however, the account balance in the Merchant B closed-loop prepaidaccount is not sufficient to cover the amount requested, a partialapproval can be returned and the amount of the deficiency can be treatedas an open-loop transaction, as indicated by block 824. If the open-loopprepaid account that is associated with the card 801 does not havesufficient funds, the cardholder may be requested to supply additionaltypes of funds to ultimately complete the transaction.

FIG. 9 shows a block diagram 900 of yet another example payment systemhaving issuer-side combination payment card processing functionality. Acombination payment card 901 shown in FIG. 9, for the purposes ofillustration, is associated with an open-loop prepaid account and apooled closed-loop account. The pooled closed-loop account can beassociated with any number or types of merchants. For the purposes ofillustration, the pooled closed-loop account is associated with MerchantA and Merchant B. The combination payment card 901 can be functionallysimilar to the combination payment card 300 shown in FIG. 3, forexample. When a cardholder of the combination payment card 901 seeks touse the combination payment card 901 for a payment transaction atmerchant 902, account information is received by the point-of-sale (POS)device 904. The account information can be electronically provided tothe issuer 914, by way of an acquirer 906 and a payment network 912, asis known in the art. Additional information can be conveyed to theissuer 914, such as, for example, a MID, a terminal ID, othermerchant-specific identifying indicia, and/or other transaction-relateddata.

Upon receiving the transaction data, the issuer 914 can determine theappropriate treatment for the authorization request. Namely, usingvarious transaction processing rules, the issuer 914 can determine toauthorize the purchase as an open-loop transaction, a closed-looptransaction, or a transaction comprising an open-loop component and aclosed-loop component. At decision 908 the issuer 914 determines if thecard associated with the transaction is a combination payment card. Ifthe card is not a combination payment card, the issuer 914 can processthe transaction as an open-loop transaction, as indicated by block 910.Funds can be deducted from an open-loop account at 730 and anauthorization 923 returned to the acquirer 906 via the payment network912.

Similar to the decision 708 described above with regard to FIG. 7, thedetermination at 908 as to whether the card associated with thetransaction is a combination payment card can be based on the accountnumber received from the POS device 604. Once it is determined by theissuer 914 that the card 901 is a combination payment card, it isdetermined at 916 if the transaction is at a first merchant (illustratedas Merchant A) or at a second merchant (illustrated as Merchant B), bothof which are associated with the pooled closed-loop prepaid account tiedto the card 901. As described above with regard to decision 716 in FIG.7, determining whether the merchant associated with the transaction isthe merchant tied to the combination payment card at decision point 916can include cross-referencing merchant identifying indicia received fromthe POS device 904 to merchant-related data stored by, or at leastaccessible by, the issuer 914. While two merchants are shown associateda combination payment card in FIG. 9, any suitable number of merchantscan be associated with the combination payment card. In any event, if itis determined at decision 916 that merchant 902 is not a gift cardmerchant tied to the pooled gift card account associated with the card901, the issuer 914 can process the transaction as an open-looptransaction, as illustrated.

If the merchant 902 is determined at decision 916 to be a gift cardmerchant tied to the pooled gift card account, the issuer 914 canprocess the transaction as a closed-loop transaction. At 922, it isdetermined if the account balance of the pooled closed-loop prepaidaccount associated with merchant 602 is sufficient to cover the amountrequested. If the account balance is sufficient to cover the amountrequested, an authorization 923 can be sent to the acquirer 906 via thepayment network 912. The pooled gift card account balance associatedwith the card 901 can be reduced by the amount authorized. If theaccount balance in the pooled gift card account is not sufficient tocover the amount requested, a partial approval can be returned inresponse to the authorization request. The remaining balance of therequested amount can be treated as an open-loop transaction, asillustrated in FIG. 9. If the open-loop prepaid account that isassociated with the card 901 does not have sufficient funds, thecardholder may be requested to supply additional types of funds toultimately complete the transaction.

FIG. 10 schematically shows the flow of funds between various entitiesand accounts for issuer-side combination card processing in accordancewith one non-limiting embodiment. A combination payment card transaction1002 is initiated at a merchant 1002 associated with a closed-loopaccount of the combination payment card. The transaction propagatesthrough the payment network 1004, as is known in the art. Thetransaction can comprise an authorization request for a particularamount of funds. For the purposes of illustration, the authorizationrequest 1006 is for $100 and the combination payment card is associatedwith a $5 gift card amount. The combination payment card is alsoassociated with an open-loop account holding over $100. In theillustrated embodiment, the cardholder account 1008 is debited the full$100 in response to the authorization request. An authorization response1014 is returned to the merchant 1002 through the payment network 1004.Assuming combination payment card transaction 1002 was initiated at amerchant associated with the $5 gift card amount, subsequent settlementsoccur to effectuate the application of the gift card amount. Namely, theclosed-loop portion 1010 (i.e., $5 in the illustrated embodiment) issettled from a merchant account 1012 to the cardholder account 1008.Accordingly, the cardholder account 1008 is credited to increase thebalance of the cardholder account 1008 by the amount of the gift card.

FIG. 11 shows one example embodiment of a payment controller 1100 thatreceives and processes payment transactional information. The paymentcontroller 1100 can be used to execute the transaction rules of theacquirers 406, 506, 606 of FIGS. 4-6 and issuers 714, 814, and 914 ofFIGS. 7-9, described above. The payment controller 1100 may be providedusing any suitable processor-based device or system, such as a personalcomputer, laptop, server, mainframe, or a collection (e.g., network) ofmultiple computers, for example. The payment controller 1100 may includeone or more processors 1102 and one or more computer memory units 1104.For convenience, only one processor 1102 and only one memory unit 1104are shown in FIG. 11. The processor 1102 my execute softwareinstructions 1106 stored on the memory unit 1104. The processor 1102 maybe implemented as an integrated circuit (IC) having one or multiplecores. The memory 1104 may include volatile and/or non-volatile memoryunits. Volatile memory units may include random access memory (RAM), forexample. Non-volatile memory units may include read only memory (ROM),for example, as well as mechanical non-volatile memory systems, such as,for example, a hard disk drive, an optical disk drive, etc. The RAMand/or ROM memory units may be implemented as discrete memory ICs, forexample. Data used by the payment controller 1100 may be from varioussources, such as point-of-sale device 1108 database. The paymentcontroller 1100 can also be in communication with various paymentnetworks 1110. The payment network 1110 can generally comprise, forexample, the sponsoring network of the combination payment cardsdescribed herein, the issuer processor, the issuer bank, and any otherintermediaries that process financial transaction.

In general, it will be apparent to one of ordinary skill in the art thatat least some of the embodiments described herein may be implemented inmany different embodiments of software, firmware, and/or hardware. Thesoftware and firmware code may be executed by a processor or any othersimilar computing device. The software code or specialized controlhardware that may be used to implement embodiments is not limiting. Forexample, embodiments described herein may be implemented in computersoftware using any suitable computer software language type, using, forexample, conventional or object-oriented techniques. Such software maybe stored on any type of suitable computer-readable medium or media,such as, for example, a magnetic or optical storage medium. Theoperation and behavior of the embodiments may be described withoutspecific reference to specific software code or specialized hardwarecomponents. The absence of such specific references is feasible, becauseit is clearly understood that artisans of ordinary skill would be ableto design software and control hardware to implement the embodimentsbased on the present description with no more than reasonable effort andwithout undue experimentation.

Moreover, the processes associated with the present embodiments may beexecuted by programmable equipment, such as computers or computersystems and/or processors. Software that may cause programmableequipment to execute processes may be stored in any storage device, suchas, for example, a computer system (nonvolatile) memory, an opticaldisk, magnetic tape, or magnetic disk. Furthermore, at least some of theprocesses may be programmed when the computer system is manufactured orstored on various types of computer-readable media.

It can also be appreciated that certain process aspects described hereinmay be performed using instructions stored on a computer-readable mediumor media that direct a computer system to perform the process steps. Acomputer-readable medium may include, for example, memory devices suchas diskettes, compact discs (CDs), digital versatile discs (DVDs),optical disk drives, or hard disk drives. A computer-readable medium mayalso include memory storage that is physical, virtual, permanent,temporary, semipermanent, and/or semitemporary.

A “computer,” “computer system,” “host,” “server,” or “processor” maybe, for example and without limitation, a processor, microcomputer,minicomputer, server, mainframe, laptop, personal data assistant (PDA),wireless e-mail device, cellular phone, pager, processor, fax machine,scanner, or any other programmable device configured to transmit and/orreceive data over a network. Computer systems and computer-based devicesdisclosed herein may include memory for storing certain software modulesused in obtaining, processing, and communication information. It can beappreciated that such memory may be internal or external with respect tooperation of the disclosed embodiments. The memory may also include anymeans for storing software, including a hard disk, an optical disk,floppy disk, ROM (read only memory), RAM (random access memory), PROM(programmable ROM), EEPROM (electrically erasable PROM) and/or othercomputer-readable media. Non-transitory computer-readable media, as usedherein, comprises all computer-readable media except for a transitory,propagating signals.

In various embodiment disclosed herein, a single component may bereplaced by multiple components and multiple components may be replacedby a single component to perform a given function or functions. Exceptwhere such substitution would not be operative, such substitution iswithin the intended scope of the embodiments. Any servers describedherein, for example, may be replaced by a “server farm” or othergrouping of networked servers (such as server blades) that are locatedand configured for cooperative functions. It can be appreciated that aserver farm may serve to distribute workload between/among individualcomponents of the farm and may expedite computing processes byharnessing the collective and cooperative power of multiple servers.Such server farms may employ load-balancing software that accomplishestasks such as, for example, tracking demand for processing power fromdifferent machines, prioritizing and scheduling tasks based on networkdemand and/or providing backup contingency in the event of componentfailure or reduction in operability.

The computer systems may comprise one or more processors incommunication with memory (e.g., RAM or ROM) via one or more data buses.The data buses may carry electrical signals between the processor(s) andthe memory. The processor and the memory may comprise electricalcircuits that conduct electrical current. Charge states of variouscomponents of the circuits, such as solid state transistors of theprocessor(s) and/or memory circuit(s), may change during operation ofthe circuits.

Some of the figures may include a flow diagram. Although such figuresmay include a particular logic flow, it can be appreciated that thelogic flow merely provides an exemplary implementation of the generalfunctionality. Further, the logic flow does not necessarily have to beexecuted in the order presented unless otherwise indicated. In addition,the logic flow may be implemented by a hardware element, a softwareelement executed by a computer, a firmware element embedded in hardware,or any combination thereof.

The foregoing description of embodiments and examples has been presentedfor purposes of illustration and description. It is not intended to beexhaustive or limiting to the forms described. Numerous modificationsare possible in light of the above teachings. Some of thosemodifications have been discussed, and other will be understood by thoseskilled in the art. The embodiments were chosen and described in orderto best illustrate principles of various embodiments as are suited toparticular uses contemplated. The scope is, of course, not limited tothe examples set forth herein, but can be employed in any number ofapplications and equivalent devices by those of ordinary skill in theart. Rather it is hereby intended the scope of the invention to bedefined by the claims appended hereto.

1-20. (canceled)
 21. A non-transitory computer readable medium havinginstructions stored thereon which, when executed by one or moreprocessors, cause the one or more processors to: receive, at an issuerprocessor over an electronic network, transaction information from anacquirer processor, the transaction information comprising accountinformation and a merchant identifier, the transaction information beingreceived over the electronic network from a point-of-sale deviceconfigured to accept a combination payment card associated with at leastone of a closed-loop account and an open-loop account; determine, by theissuer processor, that the account information identifies a combinationpayment card by cross-referencing at least a portion of the accountinformation against a known list of combination payment card accounts;if the transaction information is received from a closed-loop merchantaffiliated with the closed-loop account: transmit, by the issuerprocessor, an authorization of sale to the acquirer processor over theelectronic network based on determining the closed-loop account hassufficient funds, or determine, by the issuer processor, whether theopen-loop account has sufficient funds to cover an amount of deficiencyin the closed-loop account based on determining the closed-loop accounthas insufficient funds; and if the transaction information is notreceived from a closed-loop merchant affiliated with the closed-loopaccount: transmit, by the issuer processor, an authorization of sale tothe acquirer processor over the electronic network based on determiningthe open-loop account has sufficient funds, or request an additionaltype of funds based on determining the open-loop account hasinsufficient funds.
 22. The non-transitory computer readable medium ofclaim 21, wherein the combination payment card has an assigned cardnumber associated with a plurality of closed-loop accounts, wherein eachof the plurality of closed-loop accounts is affiliated with a respectiveclosed-loop merchant.
 23. The non-transitory computer readable medium ofclaim 21, wherein the closed-loop account is affiliated with a pluralityof closed-loop merchants.
 24. The non-transitory computer readablemedium of claim 21, wherein determining that the account informationidentifies a combination payment card comprises comparing least aportion of the account information to a plurality of combination paymentcard account numbers.
 25. The non-transitory computer readable medium ofclaim 24, wherein the plurality of combination payment card accountnumbers comprise a range of bank identification numbers (BINs).
 26. Thenon-transitory computer readable medium of claim 24, wherein theplurality of combination payment card account numbers comprise a rangeof issuer identification numbers (IINs).
 27. The non-transitory computerreadable medium of claim 21, wherein the transaction information furthercomprises a terminal identifier, and wherein the instructions furthercause the one or more processors to: determine whether the transactioninformation is received from a closed-loop merchant associated with theclosed-loop account by cross-referencing the terminal identifier to alist of one or more terminal identifiers associated with the closed-loopaccount.
 28. A computer-implemented method of processing an electronicpayment transaction using a combination payment card, thecomputer-implemented method comprising: receiving, at an issuerprocessor over an electronic network, transaction information from anacquirer processor, the transaction information comprising accountinformation and a merchant identifier, the transaction information beingreceived over the electronic network from a point-of-sale deviceconfigured to accept a combination payment card associated with at leastone of a closed-loop account and an open-loop account; determining, bythe issuer processor, that the account information identifies acombination payment card by cross-referencing at least a portion of theaccount information against a known list of combination payment cardaccounts; if the transaction information is received from a closed-loopmerchant affiliated with the closed-loop account: transmitting, by theissuer processor, an authorization of sale to the acquirer processorover the electronic network based on determining the closed-loop accounthas sufficient funds, or determining, by the issuer processor, whetherthe open-loop account has sufficient funds to cover an amount ofdeficiency in the closed-loop account based on determining theclosed-loop account has insufficient funds; and if the transactioninformation is not received from a closed-loop merchant affiliated withthe closed-loop account: transmitting, by the issuer processor, anauthorization of sale to the acquirer processor over the electronicnetwork based on determining the open-loop account has sufficient funds,or requesting an additional type of funds based on determining theopen-loop account has insufficient funds.
 29. The computer-implementedmethod of claim 28, wherein the combination payment card has an assignedcard number associated with a plurality of closed-loop accounts, whereineach of the plurality of closed-loop accounts is affiliated with arespective closed-loop merchant.
 30. The computer-implemented method ofclaim 28, wherein the closed-loop account is affiliated with a pluralityof closed-loop merchants.
 31. The computer-implemented method of claim28, wherein determining that the account information identifies acombination payment card comprises comparing least a portion of theaccount information to a plurality of combination payment card accountnumbers.
 32. The computer-implemented method of claim 31, wherein theplurality of combination payment card account numbers comprise a rangeof bank identification numbers (BINs).
 33. The computer-implementedmethod of claim 31, wherein the plurality of combination payment cardaccount numbers comprise a range of issuer identification numbers(IINs).
 34. The computer-implemented method of claim 28, wherein thetransaction information further comprises a terminal identifier, and thecomputer-implemented method further comprising: determining whether thetransaction information is received from a closed-loop merchantassociated with the closed-loop account by cross-referencing theterminal identifier to a list of one or more terminal identifiersassociated with the closed-loop account.
 35. A system for processing anelectronic payment transaction using a combination payment card, thesystem comprising: a combination payment card associated with at leastone of a closed-loop account and an open-loop account; a point-of-saledevice configured to accept the combination payment card; an acquirerprocessor configured to receive transaction information over anelectronic network from the point-of-sale device, the transactioninformation comprising account information and a merchant identifier; anissuer processor configured to: receive the transaction information fromthe acquirer processor over the electronic network; determine that theaccount information identifies a combination payment card bycross-referencing at least a portion of the account information againsta known list of combination payment card accounts; if the transactioninformation is received from a closed-loop merchant affiliated with theclosed-loop account: transmit an authorization of sale to the acquirerprocessor over the electronic network based on determining theclosed-loop account has sufficient funds, or determine whether theopen-loop account has sufficient funds to cover an amount of deficiencyin the closed-loop account based on determining the closed-loop accounthas insufficient funds; and if the transaction information is notreceived from a closed-loop merchant affiliated with the closed-loopaccount: transmit an authorization of sale to the acquirer processorover the electronic network based on determining the open-loop accounthas sufficient funds, or request an additional type of funds based ondetermining the open-loop account has insufficient funds.
 36. The systemof claim 35, wherein the combination payment card has an assigned cardnumber associated with a plurality of closed-loop accounts, wherein eachof the plurality of closed-loop accounts is affiliated with a respectiveclosed-loop merchant.
 37. The system of claim 35, wherein theclosed-loop account is affiliated with a plurality of closed-loopmerchants.
 38. The system of claim 35, wherein determining that theaccount information identifies a combination payment card comprisescomparing least a portion of the account information to a plurality ofcombination payment card account numbers.
 39. The system of claim 38,wherein the plurality of combination payment card account numberscomprise a range of bank identification numbers (BINs).
 40. The systemof claim 38, wherein the plurality of combination payment card accountnumbers comprise a range of issuer identification numbers (IINs).